Your Guide to Life Planning

November 2017

David Olsen
Olsen Investment Management
Wealth Consultant
4809 State Highway 30
Amsterdam, NY 12010


Investing for Retirement: A Marathon, Not a Sprint

Let's face it: You can't fund a 20-year retirement in just five years. Investing for retirement takes time, and success requires that you start early and invest appropriately at each stage of your life.

The Early Bird

Successful investors often begin putting money into an investment account as soon as they start working. If you began investing in your 20s, you may be well on your way to a comfortable retirement. By starting to save at the beginning of your career, you have many years to reap the potential benefits of compounding -- the continuing reinvestment of investment earnings. If you're eligible to contribute to a tax-qualified retirement plan at work, you also have the potential advantage of tax-deferred growth of your account assets. And, if your employer matches employee contributions, you'll enjoy the added benefit of "free" money.

When you're just starting out in the work force, you have an important advantage: time. Even though some of your savings may be earmarked for shorter-term goals, such as a down payment on a house or a child's education, your long time horizon for retirement means you may be able to take more risk with your investments. During these early years, you may want to allocate more of your portfolio to investments that have the potential for growth over the long term, such as stocks and stock mutual funds.1

Time Is on Your Side

By the time you reach your 30s and 40s, you may have been saving for retirement for several years through your employer's retirement plan, your own individual retirement account, other investments, or a combination of the above. The middle years, when you're generally well-established in your career, are critical to the growth of your retirement assets. Consider contributing the maximum amount you can afford -- or at least as much as your employer will match -- to your account. Now may be the perfect time to increase your contributions.

Maximum growth of your assets should be your goal during the middle years. Since you probably still have quite a few years before you retire, you may want to continue to keep a portion of your portfolio invested in securities, such as stocks, with the potential for higher returns. Historically, over the long term, stocks have always recovered from any decline in value and generally offer the best inflation protection of any investment.2 However, only you can determine how much investment risk you're comfortable with.

The Home Stretch

By your 50s and 60s, you may have considerable assets in your retirement account. As you get nearer to retirement, you may be concerned with protecting your assets from loss. If you've allocated a sizeable portion of your portfolio to riskier investments such as stocks, you may want to preserve your gains by moving some of your money into potentially less volatile investment types. Your tolerance for risk will help you determine the percentage of your account to allocate to lower risk investments, such as bonds and money market funds.3

Stock market fluctuations are not the only risk to your retirement funds. Even modest inflation can significantly reduce your nest egg's buying power in the future. Your savings may have to fund a retirement that lasts for 15, 20, or 30 years. For this reason, during your remaining working years -- and after retirement -- you may want to keep at least a portion of your portfolio invested in stocks, which historically have outpaced inflation.

Your financial professional can help you design an appropriate investment strategy for each stage of your life.


1Investing in stocks involves risks, including loss of principal. Investing in mutual funds involves risk, including loss of principal. Mutual funds are offered and sold by prospectus only. You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. For more complete information about any mutual fund, including risks, charges and expenses, please contact your financial professional to obtain a prospectus. The prospectus contains this and other information. Read it carefully before you invest.

2Past performance is no guarantee of future performance.

3An investment in a money market fund is not insured nor guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.

© 2017 DST Systems Inc. All rights reserved.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.


The financial consultants of Olsen Investment Management are registered representatives with and Securities are offered through LPL Financial. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.


Not FDIC/NCUA Insured

Not Bank/Credit Union Guaranteed

May Lose Value

Not Insured by any Federal Government Agency

Not a Bank Deposit



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